The board of directors of Hop Fung Group Holdings Limited announced that, based on the preliminary review of the Group's unaudited consolidated management accounts for the year ended 31 December 2019, the Group is expected to record a loss attributable to owners of the Company for the year ended 31 December 2019 (the "Reporting Year") as compared to a profit attributable to owners of the Company for the year ended 31 December 2018. Based on the information currently available, the expected loss for the Reporting Year is mainly attributable to the combined effect of, among others, (i) the imposition of measures by the Chinese government to restrict the import of wastepaper, one of the major raw materials for the Group's production of containerboard, and in particular, a significant decrease in the number of import quota of the Group for wastepaper in 2019 as compared with 2018, which in turn reduced the supply of raw materials for the Group's production; (ii) a decrease in the average selling price of the Group's products due to the weakened domestic demand of corrugated paper products as a result of the general downturn of the economy of China; and (iii) an increase in the proportion of costs of production of the Group, as the decrease in average selling price of the Group's products outweighed the effect of reduction in overhead costs. Despite the expected loss for the Reporting Year, the Board is of the view that the overall operation and financial position of the Group remain healthy and sound.